Business & License Tax

WHAT IS A PRIVILEGE LICENSE?

A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12, Code of Alabama 1975.

WHEN IS THE LICENSE DUE?

The annual license covers the period of October 1 through September 30. The license will be delinquent on November 1.

WHERE DO I BUY THE LICENSE?

The State and County license(s) is issued by the county Probate Judge or License Commissioner in the county where the business is located. Unless otherwise provided, a license is required in every county where the business is conducted.

DO I NEED A CITY LICENSE?

The Alabama Department of Revenue does not administer municipal licenses. You should check with every city office where you are conducting business to verify what licenses are required prior to transacting business.

WHAT LICENSES AND PERMITS ARE NECESSARY AND WHAT ARE THE FEES?

City and County officials will determine what local licenses and permits are necessary. A variety of business privilege licenses are administered by the Alabama Department of Revenue which affect proprietorships, partnerships, and corporations as well as certain professions. Fees vary dependent upon the type of license required, and, in some cases, upon the population of the area where the business is located or upon the volume of business. It is important to be aware that one business may require several different types of business privilege licenses depending upon the services offered or products sold by the business.

HOW DO I BECOME A DISMANTLER?

Please visit www.MyAlabamaTaxes.alabama.gov and click on New Business Registration Application in the New Business Registration box and proceed with the registration process. Upon submitting your registration information, you will receive an email with the sign-on id, account number, and access code within 48 hours. You will use this information to log back into the system and complete the application process which includes applying for buyer's identification cards, if applicable. The fee for the dismantler license is $226. The fee for the BID cards is $10 per card with a limit of three cards per licensee. For list of other licenses and exemptions related to dismantler licenses click here.